Economic integration Forecasting models General equilibrium models International trade agreements Open economies Structural adjustment Barriers to trade Trade finance Trade negotiations Trade negotiations 44 Countries initially signed the agreement on 21 March 2018. Nigeria was one of 11 African Union nations that initially did not sign. At the time, Nigerian President Muhammadu Buhari said Nigeria could not do anything that would harm local producers and entrepreneurs. [53] The Manufacturers Association of Nigeria, which represents 3,000 Nigerian producers, welcomed the decision to withdraw from the agreement. [53] Nigeria`s foreign minister tweeted that further internal consultations were needed before Nigeria could sign the deal. [54] Former President Olusegun Obasanjo said Nigeria`s delay was regrettable. [55] The Nigerian Labor Congress called the agreement a “renewed neoliberal political initiative, extremely dangerous and radioactive,” indicating that increased economic pressure would push workers to migrate under difficult and uncertain conditions. [56] The following institutions have been established to facilitate the implementation of the free trade area. As a result of the Phase II negotiations, there is an possibility to create more committees on minutes. [38] The general objectives of the agreement are:[20] Maria Filipa Seara e Pereira consults the World Bank`s Regional Trade Integration Unit (ETIRI). She works mainly on topics related to international trade and international development, including modelling, trade policy, the distribution effects of trade and global value chains.
A second challenge is specific to the East African Community. Of the six members, only three have ratified the AfCFTA to date. Given that the EAC regional bloc is a customs union and therefore has a Common External Customs Tariff (TEC) without the other three member states having yet ratified the AfCFTA, the integrity of the TEC will be problematic. Rules of origin can in principle limit this problem, but their liberal application will lead to higher overhead costs and increase the risk of trade diversion (thus diverting trade from a more efficient exporter to a less efficient exporter due to differences in tariffs). This could reduce the benefits of the AfCFTA. The greater the degree of harmonization of trade policy regimes within East Africa, the better, as it will facilitate deeper regional economic integration and pave the way for the creation of an Africa-wide customs union, as provided for in the AfCFTA agreement. Free download. Use adobe Acrobat Reader free to view this PDF file The 12th extraordinary meeting of the African Union on AfCFTA was convened to put the new agreement in its operational phase, which took place on July 7, 2019 in Niamey. [40] [41] Roberto Echandi is Lead Private Sector Specialist at ETIRI…